Feeding scheme starved of payment

Family’s dream now a nightmare

A family’s dream of running a thriving school feeding scheme business came crashing down on them when the education department allegedly withheld a R1.4m payout resulting in the family shutting down their business.

Sisters-in-law Mokoena and Nolundi Mtshabe, a retired teacher and an entrepreneur, started Thuthukani Women Development Trust with three other women in Mthatha, Eastern Cape, in 2003 and in the same year the company was awarded a five-year contract to feed pupils in schools around the King Sabata Dalindyebo municipality.

The tender required them to source suppliers and workers that would do the cooking.

“We used our own resources such as cars and money to go and negotiate with suppliers.

We also had to risk our personal credit worthiness to secure supplies because we did not have enough money to buy the stuff on our own.

Initially, they [the government] paid on time and the business was great.

We were able to employ four cooks and a driver,” explained Nolundi.

Towards the end of their contract, Mokoena claims that the department started slacking with payments.

“Payment would be done late and while we wait we’d be left with no option but to reprioritise whatever resources we have so that we can pay suppliers and pay salaries.

For an example, money meant to pay the utilities bill would be channelled to salaries so that our workers could feed their families.

However, as time went on this practice became unsustainable and we had to close because we were running the business at a loss,” said Mokoena.

By the time their contract ended, the Mtshabes were being owed R1.4m in unpaid invoices. The government then introduced a new feeding business model where schools are given a food budget and the choice of who prepares their meals.

Mokoena has since ventured into accommodation and owns a bed and breakfast establishment. She mainly does business with the private sector.

“No more tenders for me. I’m doing fairly well now because I deal with private companies and they always pay on time and aren’t ambiguous when they tell me that a payment will be delayed. In fact, they call me when there is a payment delay instead of me chasing after them like

“I used to do with government,” said Mokoena.

‘‘ No more tenders for me.